Understanding the Basics of Fulfillment by Amazon (FBA) and How to Determine If It is Right for Your e-Commerce Business

fulfillment by amazon FBA

In this article we take a closer look at Fulfillment by Amazon, also known as Amazon FBA. It is important for all e-commerce businesses to know about this service and understand if it is a fulfillment service they should utilize. The following guide will help you in understanding how FBA works, therefore making your decision easier.

Who May Want to Use Amazon

Deciding on whether to utilize Amazon FBAfor your online store, is far from being easy. This fulfillment service is attractive at a glance but, you need to have an in-depth knowledge of how it works to know if it will be a plus for your e-commerce business.

What is Amazon FBA?

Amazon FBA allows your business to center its focus on marketing and sales for your online business. Generally, FBA is a 3PL fulfillment service, because they play a third party role in taking care of your order. In other words, they are in charge of handling your operation. Amazon will take care of the storefront software, while still building on your site’s product pages. When someone orders something from your page, Amazon will collect the order from your CRM and fulfill it. Additionally, this program has expanded, which means that you can now use their website to fulfill your own orders. This reduces your worry over inventory management.

The program allows you to keep your goods at Amazon’s warehouse. Therefore amazon can immediately pick, pack, and then ship your orders.Though limited, FBA also provides their customer service in regards to shipping. Amazon mostly utilizes its own returns and shipping policies, meaning that they can control how your goods are returned. If any client inquires about tracking information, FBA will provide it. What they lack in this area are any services for quality concerns your customers may have.

Why you should use FBA fulfillment service?

FBA provides many e-commerce and small businesses with valuable service. By using FBA, your business will enjoy some of these services.

1. Costs that are easy to understand 

Growing an entrepreneurial venture is not easy, especially because of cost fluctuations. However, Amazon FBA is absolutely transparent about the costs as well as an estimation of tools. They give you the basic costs and charges, from warehousing to shipping. Services, support, and returns processing are all covered.

2. Built-in service

Your FBA costs cover the customer services that Amazon provides to you directly, and this adds an advantage to your business. Because of Amazon’s consumer-friendly policies, people are bound to come to shop on the site. With Amazon FBA, your customer reach can expand. Clients can reach Amazon through phone, chat, or email; whenever they have queries or need assistance.

3. Amazon Prime is supported.

Amazon Prime members automatically get a free two-day option on their products. You could also be listed as a Prime option when someone is going through search results.

Who may want to use Amazon FBA?

If you appreciate the difficulty that may at times come with trying always to keep your fulfillment in order, then you should definitely consider FBA. It is also a good choice if you want your business to be innovative. FBA can free up your brain by enabling you to focus on every other aspect of your business apart from fulfillment. Finally, FBA will be good for you if you want to reduce your shipping and warehousing costs.

What if I am already using a fulfillment service?

To get the most out of the market share, you could still utilize FBA even if you have your products being fulfilled by another 3rd party supplier. Make sure your current fulfillment partner can provide you FBA Entry Services like QuickBox Fulfillment. These services help e-commerce business become compliant by meeting the list of requirements to maintain your FBA status and continue to grow your market share. 

 About QuickBox

QuickBox is a trusted third-party fulfillment partner of direct-to-consumer (DtC) brands. The company offers its clients fulfillment, vendor management, and supply chain integration services. Its specialized focus and commitment to operational excellence led to rapid growth in the health, beauty, and pet segments. QuickBox has more than 300 employees in its Denver headquarters and Atlanta, Ga., distribution center. More information is available at quickbox.com.